CSM North of Acton must deliver on its agreement to use private funds to convert the site to 30 to 35 market-rate apartments.
The former Springfield School Department building at 195 State St.SPRINGFIELD – The City Council was willing Monday to sell the vacant, century-old former School Department office building at 195 State St., for a nominal fee of $1, saying the proposed market rate housing project, the future tax revenues, and the reuse of the site was too important to let slip away.
By a 10-1 vote, the council authorized the sale of the building to CSM North of Acton for $1, which was the offer made for the city-owned building.
In exchange, CSM North must deliver on its agreement to use private funds to convert the site to 30 to 35 market-rate apartments, city officials said. The sale price is considered the city’s contribution to bringing quality, market-rate housing to downtown and to keep the site from becoming a long-vacant, neglected structure, officials said.
The School Department moved out of the building a year ago, relocating to the old federal courthouse building on Main Street.
Councilor Clodovaldo Concepcion cast the sole vote against the sale.
“I don’t think we should be giving city property away,” Concepcion said following the vote. “It’s a prime location. We should wait for a good price.”
Councilor Timothy C. Allen, chairman of the Planning and Economic Development Committee, said many factors override the price issue.
The project “strengthens the neighborhood” with additional market-rate housing, triggers new tax revenue estimated at $40,000 to $60,000, and brings major interior renovations to “a beautiful building, a historic building with a lot of wonderful features.”
The request for proposals attracted just one other bid from GLC of Boston, offering a price of $25,000 for the building. However, GLC needed $500,000 in city funding commitments through federal grant programs to provide housing with low income restrictions, city officials said.
The CSM North project drew community support from groups that included the State Street Alliance, the Armory-Quadrangle Civic Association, the Springfield Preservation Trust, the Springfield Museums and the Classical Condominiums.
Councilors also praised the developer’s track record for quality market-rate apartment projects in other cities, including New Haven, Hartford, Lowell and Lawrence.